Initial Europe August MEG settles at €975/tonne, up €90/tonne

09 August 2012 16:04  [Source: ICIS news]

LONDON (ICIS)--An initial European August monoethylene glycol (MEG) contract has been agreed up by €90/tonne at €975/tonne ($1,204/tonne), the seller involved said on Thursday.

The settlement was agreed on a free delivered (FD) northwest Europe (NWE) basis.

"It is a combination of the market in the past few weeks and the current market in Europe and Asia … Product is very tight," the seller said.

Spot prices in Asia, the dominant glycol market, were reported at $1,030/tonne CFR (cost and freight) China Main Port (CMP) on Thursday.

European spot bulk prices were reported at €910-950/tonne CIF (cost, insurance and freight), an increase from lows in the €600s/tonne seen in July.

A second producer said earlier in the day that it was holding out for a contract agreement of €1,025/tonne, adding that he was not in a hurry to settle.

One buyer said this week that just above €900/tonne would be appropriate, while another was looking for under €950/tonne.

($1 = €0.81)

Follow Caroline on Twitter for tweets on the MEG market

By: Caroline Murray
44208 652 3214

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